My Top Stock Picks for 2025 and an Overnight Trade Idea

by | Jan 16, 2025

As we kick off 2025, the market is presenting a mix of challenges and opportunities. With a new administration settling in and several sectors poised for growth, I’m focusing on areas where political and economic shifts could create big moves.

My top picks for this year highlight the intersection of technology, energy and defense — all sectors that stand to benefit from current trends and potential deregulation.

I also have an overnight trade idea to share, so let’s start there…

This Week’s Overnighter

Today’s trade idea* — which I covered on “The Opening Playbook,” 10 a.m. ET every Thursday! — would be entered today and exited tomorrow. 

Now, by the time this is being written, the stock has already moved too high to play it the way we did, which is great news for everyone who watched and got in live because that means we’re up big. 

The trade was in Lululemon (LULU), a stock I really like almost as much as their clothes!

Now, LULU has seen four straight down days, and there’s a pattern here…

The probability was strong for this stock to bounce back after so many down days — nothing is guaranteed, of course. We’re playing probabilities here in this “fade trade.”

So the idea was to fade LULU’s four straight down days with a Wrap Order. 

Ticker: LULU

Options:

  • 17 JAN 25 EXP
  • Buy $367.50 CALL
  • Sell $370 CALL

The idea was to double our money, and the stock is up $5-$6 from our entry so it’s too late to enter the exact same trade unless it comes back down by the time you read this. 

A Wrap Order “wraps” the strikes around the current price of the stock. You buy the call that’s under the current stock price, and sell the call that’s over. 

So let’s say the stock is trading at $374 when you read this. You’d buy the $372.50 CALL, and sell the $375, creating a debit. 

Be sure to tune in at 10 a.m. ET every Thursday so you can see these trades as I place them — you can also catch the replay above for more commentary! I gave a few examples of different strikes and used the calculator to better illustrate the risk-reward. 

Now let’s get to my top picks for 2025…

Tesla Leads the Charge

It’s no secret that Tesla (TSLA) has been a market darling for a long time, but 2025 could be another standout year for the company. Elon Musk’s relationship with the current administration — and their mutual enthusiasm for energy innovation — positions Tesla to thrive.

Whether through subsidies or expedited projects, Tesla’s exposure to the push for clean energy gives it a significant tailwind. Combine that with Musk’s ability to generate excitement around the brand, and TSLA remains a strong play.

Meta Platforms: Late to the Party but Still a Winner

Mark Zuckerberg’s late alignment with the Trump administration might have been surprising, but it’s likely to pay off. Meta Platforms (META) is a growth story that isn’t just about social media anymore.

The company’s ventures into hardware, AI and the metaverse offer significant room for expansion. While it’s not as large as Apple or Microsoft, META has plenty of untapped potential, especially with the right political connections supporting innovation and market expansion.

The Energy Revolution: Nuclear and Beyond

Energy is one of the most exciting areas to watch in 2025. The push for clean and efficient solutions has brought nuclear power back into the spotlight.

My top pick in this space is General Electric Vernova (GEV), a spin-off focused on Small Modular Reactors (SMRs). With SMRs offering scalable, efficient and safe energy solutions, GEV is positioned to be a leader in this transformative space.

For those looking for a more speculative play, Oklo (OKLO) is a stock I’ve been trading actively.

It’s volatile — moving up and down as much as 15% in a single day — but its potential as a game-changer in nuclear energy is undeniable.

If you can stomach the swings, OKLO is a name to consider.

Defense and Aerospace Stocks

Defense stocks are another area where I see potential upside this year.

Howmet Aerospace (HWM) and Lockheed Martin (LMT) are among my favorites. These companies provide stability and consistent performance, averaging strong annual returns over decades. In a high-volatility market, they’re like insurance — offering reliable growth when other areas are uncertain.

Finally, while the broader market might see some choppiness this year, opportunities are plentiful in the right sectors. Keep an eye on key trends — deregulation, energy innovation and strategic partnerships — and focus on stocks with room to grow.

Tesla, Meta and leaders in energy and defense are all set to make waves in 2025.

Stay tuned — this year could be one for the books!

Graham Lindman
Graham Lindman Trading

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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. Why AAPL is Morgan Stanley’s No. 1 Stock of 2025

Most people think Nvidia is winning the AI war…

But analysts at Morgan Stanley see a huge advantage for Apple (AAPL) in 2025… 

And that’s going to spur stronger “momentum cycles” in the stock

Find out how to tap into these momentum cycles to target 100% ROI in 4 days.

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